sales tax on interstate purchases

[mysterium]

Howard both sales tax & VAT are regressive taxes.

For example assuming after tax $$$ & all $$$ would be subject to tax....

A family on $20,000 after tax $$$ would have spend every $$$ to survive, thus at a 7% tax they would spend $1,400.

Another family has $100,000 in after tax $$$ but spends only $60,000 at a 7% tax or $4,200.

Grant the family with $100,000 income spent $2,800 more ($4,200 - $1,400) than the family with the $20,000 income.

But when you look at %.  Where the family with $20,000 paid 7%    The family with the $100,000 only paid 4.2%

Thus the lower the income the higher %, the high the income the lower the % thus sales tax & VAT are regressive tax. 

And we all understand if we don't have to pay sales tax on an internet purchase we save_____%

jim

 

[Bob Marino]

The tools "belong to" are "owned" by the dealer - Festool USA is merely a shipping agent for  the dealer.

Hi Bob,
So does that mean that you actually keep an inventory at Festool, as in, they have a list of goods that are yours, or is it that in theory, anything someone buys from you is instantly reserved for you at Festool?
It's an interesting way to set up the business.  At any rate, it is effective.
-Andy

Andy,

I do happen to stock tools and accessories. This is primarily for customers wishing to pick up them up. Dealers can choose to stock the tools and drop ship or stock the tools and have Festool drop ship or anything in between. When a customer orders from a dealer and that dealer has Festool drop ship the order, Festool bills the dealer directly, not the customer, because the dealer "owns" the tools and Festool is serving as a shipping agent.

Bob

 

[bill-e]

NH is great on sales tax and lousy on property tax.  I'm paying almost $7k/year for my house and all I get are my roads plowed and speeding tickets

 

[Dan Uhlir]

I'll check with a tax pro how to handle tax stuff. I'll stick to fixing ski's painting, and selling whatever people are buying. peace dan